Monarch tipped for crucial Boeing deal

Monarch is understood to be close to agreeing a revised aircraft order with Boeing that could help to secure the company’s future.

Sky News reports that Monarch is putting the final touches on a refinancing deal centred around the purchase of 45 aircraft announced in 2014.

The financial restructuring is understood to include sale and lease-back agreements which would free up crucial cashflow for the carrier.

Monarch was granted a 12-day extension on its Atol renewal on Friday last week, in order for it to confirm further financial investment and reassure the CAA that it was in a sound position to continue trading.

The Sky News report says the refinancing with Boeing was likely to contribute to £165 million investment package which will also see Monarch’s owners Greybull Capital inject more capital into the company.

The report quotes from an email sent by chief executive Andrew Swaffield to Monarch employees, which strikes an upbeat tone but warns that a final announcement on the company’s Atol renewal was unlikely to be made before the deadline day of Wednesday this week.

The email said: “I was at the CAA on Monday and have been spending a lot of time over the last two days with our legal and finance teams, as we dot the i’s and cross the t’s on the largest investment in our history – on the back of which we expect the CAA to renew our licences and which will help us move into the next stage of our growth and development.

“It’s been another busy week for all of us following the events of last Friday and the extension to our Atol licences.

“All parts of the business are working hard, both to keep things ‘business as usual’ and maintain consumer and customer confidence, in the face of continued media and social media commentary and speculation.

“As soon as we are able to give details of our investment and confirm the renewal I will.

“But to manage your expectations, this will be on the 12th (Wednesday).

“As said before, there is a process the business must follow and this takes time.”

Monarch, Boeing and Greybull were all unavailable for comment, Sky reported.

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